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Management Advisory Services (Differential Cost Analysis) by Dr. Joy Kenneth Sala Biasong

Management Advisory Services (Differential Cost Analysis) by Dr. Joy Kenneth Sala Biasong

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Management Advisory Services (Differential Cost Analysis) by Dr. Joy Kenneth Sala Biasong

  1. 1. DIFFERENTIAL COST ANALYSIS( Management Advisory Services) by Dr. Joy Kenneth Sala Biasong BSA, BSC-BA, MBA, MPA, MEd., DM, Ed.D., Ph.D.
  2. 2. Decision Making AlternativesDecision Making Alternatives  Make or BuyMake or Buy  Sell or Process FurtherSell or Process Further  Continue or Discontinue Operating aContinue or Discontinue Operating a Business SegmentBusiness Segment  Accept or Reject a Special OrderAccept or Reject a Special Order  Temporary ShutdownTemporary Shutdown  Utilization of Scarce ResourcesUtilization of Scarce Resources  Change in Profit FactorsChange in Profit Factors ( Source: Management Advisory Services by R. Roque)( Source: Management Advisory Services by R. Roque)
  3. 3. Decision Making ProcessDecision Making Process  Defining the problemDefining the problem  Setting of criteriaSetting of criteria  Identifying alternativesIdentifying alternatives  Determination of possibleDetermination of possible consequences of the alternativesconsequences of the alternatives  Evaluating the alternativesEvaluating the alternatives  Choosing the best alternativeChoosing the best alternative  Make the decisionMake the decision ( Source: Management Advisory Services by R. Roque)( Source: Management Advisory Services by R. Roque)
  4. 4.  See factsheets for the sampleSee factsheets for the sample computations for each alternativecomputations for each alternative and accounting problemsand accounting problems

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Management Advisory Services (Differential Cost Analysis) by Dr. Joy Kenneth Sala Biasong

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